Why is Pancontinental Energy Permit Extension Important?
Pancontinental Energy's PEL 87 Project: A Leap Forward in Offshore Exploration
Pancontinental Energy NL (ASX: PCL), a key player in the offshore oil exploration sector, has provided a crucial update regarding its PEL 87 project offshore Namibia. This update includes significant developments that underscore the project's potential in the Namibian Orange Basin, a region rapidly gaining recognition for its oil prospects.
Extension of PEL 87 Permit: Approval by the Ministry of Mines and Energy (MME)
Pancontinental announced that the MME has approved the extension of the PEL 87 permit into the first renewal exploration period, set to run from January 23, 2024, to January 22, 2026. This extension is pivotal as it comes with an exemption from the relinquishment requirement at the end of the initial period, enabling Pancontinental and its partners to retain the full extent of their 10,970 km² exploration footprint.
Drilling Success at Mopane-1X: A Significant Discovery
GALP Energia reported a significant oil discovery at the Mopane-1X exploration well, located immediately south of PEL 87 in PEL 83. This well encountered a substantial column of light oil in high-quality, reservoir-bearing sands. Namcor, the Namibian state oil company, has identified these sands as being of Upper Cretaceous age, specifically Cenomanian-Turonian, which is believed to share the same oil source formation (Kudu Oil Shale) as PEL 87's Saturn feature.
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Implications for PEL 87
The discovery at Mopane-1X is the fifth major oil find in the Namibian Orange Basin in less than two years. This discovery not only validates the petroleum play extending from TotalEnergies and Shell's acreage to the north but also positively impacts the prospectivity of PEL 87.
Advances in Seismic Data Analysis: Receipt of Final PSDM Data
Pancontinental has received the final 3D prestack depth migrated (PSDM) seismic volume from CGG, the primary processing contractor. This data allows for a comprehensive and detailed interpretation of the PEL 87 seismic, including a significant quantitative interpretation (QI) program. This program aims to identify seismic anomalies potentially indicative of direct hydrocarbon indicators.
Upcoming Interpretation and Analysis
Given the volume of data and the complexity of the analysis required, Pancontinental anticipates that the results will take several months. The company plans to provide interim updates as the various hydrocarbon play types identified are further developed.
The Woodside Option and the Long Stop Date: A Pending Deliverable
While the receipt of the final PSDM data was initially expected to establish the long stop date for Woodside to exercise its option to farm into PEL 87, a remaining deliverable (truncated final migration gathers) is still pending. This delivery, expected in approximately two months, will set the long stop date at 180 days from its receipt. Woodside retains the ability to exercise its option before this date.
Executive Director's Commentary
Pancontinental's Executive Director, Barry Rushworth, commented on the necessity of patience regarding the significant 3D seismic interpretation effort and the establishment of the long stop date. He expressed confidence in the prolific nature of the Namibian Orange Basin and the exciting prospects for Pancontinental in 2024 and beyond.
A Promising Outlook for Pancontinental's PEL 87
Pancontinental Energy's PEL 87 project update highlights a series of promising developments, including the permit extension, the significant oil discovery at Mopane-1X, and the advancements in seismic data analysis. These developments position Pancontinental for a potentially transformative period in offshore oil exploration in the Namibian Orange Basin.
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